Gold Rewrites History: For the First Time in 30 Years, Global Reserves Choose Precious Metals Over the Dollar A historical turning point in global reserves: just 3 months into 2026

For the first time since 1996, a landmark event has occurred — the combined gold holdings of foreign central banks have surpassed their investments in U.S. government bonds. Currently, gold is valued at approximately $4 trillion, while U.S. Treasury bonds total around $3.9 trillion.
Formally, the gap is minimal — just $100 billion. But symbolically, this event marks a pivotal moment in the architecture of the global financial system. For the first time in three decades, central banks worldwide have made a deliberate choice for a tangible asset over dollar-denominated debt. Gold is reclaiming its status as the premier reserve instrument.
The Scale of Gold Accumulation Is Unprecedented
Over the past three years, central banks have accumulated more than 1,000 tonnes of gold annually — twice the average annual purchases of the previous decade (400–500 tonnes).
Historical context matters: the last time such purchasing pace was observed was in the 1970s–1980s, when geopolitical instability and inflationary shocks similarly pushed reserve managers toward precious metals. Today’s scenario echoes that dynamic.
China stands as the undisputed leader among buyers: the People’s Bank of China has made purchases for 13 consecutive months (as of November 2025), accumulating reserves exceeding 2,300 tonnes. Poland, Brazil, and central banks across the Persian Gulf have similarly intensified their positions. Notably, 95% of central banks globally plan to increase their gold reserves in 2026, according to a World Gold Council survey.
BRICS as the Principal Beneficiary and Architect of the Trend
A crucial clarification: BRICS is not merely a participant in this shift—it is the primary architect orchestrating it. Member nations and affiliated economies control approximately 50% of global gold production and have accounted for more than half of all central bank gold purchases during 2020–2024.
This is no coincidence. In December 2025, BRICS launched a pilot program for its own instrument — the BRICS Unit, comprising 40% physical gold and 60% BRICS currencies. The unit is pegged to 1 gram of gold and was issued in an initial amount of 100 Units. This represents the first practical step toward creating an alternative settlement system independent of dollar-based architecture.
Catalysts: Geopolitics and Macroeconomics
Three factors are intensifying this trend:
1. Sanctions Risk and the Need for a Politically Neutral Asset
The freezing of Russian assets in Western banks in 2022 definitively demonstrated to central banks the vulnerability of currency reserves to political pressure. Gold is the only asset that cannot be frozen politically. As economist Evgeny Biryukov noted: “For BRICS nations, gold is a defense mechanism against sanctions, a response to unreliable partners, and a tangible asset with millennia of recognized value”.
2. Tariff Wars and Trade Instability
The new round of U.S. trade conflicts (particularly against Europe and China in early 2025–2026) is creating macroeconomic turbulence. Each wave of tariff threats sends investors toward safe havens, pushing gold prices higher. For instance, threats of 10–25% tariffs on EU nations in January 2026 sent gold prices to historical peaks of $4,755–$4,900/oz.
3. Eroding Confidence in Fiat Currencies and U.S. Debt
Rising U.S. government debt (exceeding $34 trillion) and political instability are casting doubt on the long-term reliability of Treasury bonds. Simultaneously, foreign central banks have begun reducing their Treasury positions. China cut its holdings from $900+ billion to $682–689 billion — the lowest level since 2008. Brazil, India, and Russia are similarly diversifying away from dollar-denominated assets.
Prices as a Reflection of New Reality
Over the past 12 months, gold prices have surged 60%+, reaching record levels of $4,800–$4,900 per troy ounce. Goldman Sachs raised its price target to $5,400 by end of 2026, citing sustained demand from central banks and private investors diversifying portfolios away from traditional currency reserves.
Notably: central banks continue purchasing gold despite historically elevated prices. This behavior signals a long-term shift in reserve strategy rather than short-term speculation.
A Structural Shift, Not a Cyclical Process
Experts are observing a deep transition, not merely a temporary deviation. Gold’s share of official reserves has grown from 5% in the early 2000s to 27% by 2025–2026, while the U.S. Treasury share has fallen from 30%+ in the 2010s to 23%.
The Washington Consensus that dominated since the 1970s is undergoing fundamental revision. BRICS and emerging economies are constructing an alternative reserve architecture with gold at its center.
Implications for Investors and Business
For companies and traders in the international commerce space (particularly in BRICS and emerging markets), this means:
• Currency volatility will remain elevated — central banks will sustain gold demand, redirecting capital away from bonds.
• Opportunities in commodity sectors (gold, silver, rare earth exports) are expanding as strategic reserves are revalued upward.
• Modest shifts in credit conditions — if Treasury yields rise due to declining demand, this will affect global trade financing.
Conclusion
The January 2026 event is not merely a technical crossing of lines on a graph. It is a milestone marking the beginning of a new era in global finance. The de-dollarization that BRICS has advocated for the past five years has, for the first time, manifested in tangible, measurable transformation. Gold is ceasing to be merely a retreat from risk—it is becoming the strategic asset of choice for restructuring the global order.
Central banks worldwide have sent an unmistakable signal: gold has once again surpassed dollar debt in the hierarchy of reserves.